Preview

Case Study: IBM Global Services : The Professional Computer Services Industry

Satisfactory Essays
Open Document
Open Document
372 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case Study: IBM Global Services : The Professional Computer Services Industry
History, development and growth:
International Business Machines (IBM) Global Services in operating in a changing environment, Sine December 1996, when IBM established IBM Global Services (IGS), had achieved outstanding business result.IGS had grown faster than the industry, and IBM Global Services was then widely recognized as the largest computer services company in the world.
Being led by its CEO Mr. Gerstner, IGS is facing a changing tide where they must make a strategic decision to either continue to be “everything for everyone” or shift towards providing solutions for costumers facing E-Business challenges in sourcing and implementation.
The main issue to be resolved by John, chief financial officer of International Business Machines (IBM) was to create an enterprise wide strategy that would differentiate IBM Global services from its competition; Figure( 1) identifies the segments of IMB (hardware, global services, software, global financing, enterprise investments /other) and the company's percentage of revenue by segment.
Figure 1:
IBM Company's percentage of revenue by segments 2000 1999 1998

Hardware 42.7 43.3 44.2 Global services 37.5 36.7 35.4 Software 14.3 14.5 14.5 Global financing 3.9 3.6 3.5 Enterprise investments/other 1.6 1.9 2.4 Total 100 100 100
Source: IBM Annual Report (2001)

IBM Global Services is well positioned in the professional computer services industry includes three broad categories of services; processing services (data entry ,credit card authorization, billing

You May Also Find These Documents Helpful

  • Better Essays

    Hrm 534 Assignment 3

    • 1234 Words
    • 4 Pages

    IBM Global Services has numerous operations which provide a cooperative environment between themselves. The services that company provides are strategy and change management, human capital management, customer relationship management, supply chain management, and financial management as well as application development, data storage, infrastructure management, networking, and technical support. The company capable of working in a unison with the other IBM divisions which gives a competitive edge to IBM in its business consulting services (Datamonitor Plc., 2007).…

    • 1234 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    References: IBM. (n.d.). Globalize your on demand business. Retrieved October 1, 2006, from Web Site…

    • 1454 Words
    • 6 Pages
    Powerful Essays
  • Best Essays

    Global Business Case Study

    • 1923 Words
    • 8 Pages

    Price is a major internal influence that has contributed to ALDI achieving business success in Australia.…

    • 1923 Words
    • 8 Pages
    Best Essays
  • Satisfactory Essays

    Case Study Ibm

    • 357 Words
    • 2 Pages

    IBM provides business and IT solutions to help clients become more efficient and competitive. They use 5 major lines of business; global business services, global technology service, system and technology, software, and global financing. IBM transformed the knowledge sharing approach so that the access to information is easier for their employees. In so doing quicker service for their clients.…

    • 357 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Such a strategy requires the employment of talented people and a flexible culture promoting innovation to help identify, develop and market products and services. Capital One’s information-based strategy, or IBS, serves as the strategy to improve operations in every aspect of the company. IBS technology enables Capital One to provide more valuable products, thereby creating a positional advantage over its competitors. However, by focusing on the IBS capability as its sole competitive advantage, Capital One neglects any positional advantages, such as its brand, that might become more valuable than the potential advantage IBS might yield elsewhere.…

    • 687 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    International Business Machines operates in five business segments: global technology services, which provides information technology infrastructure and business process services; global business services, which provides business outcomes to Co. 's clients across two primary business areas: Consulting and Application Management Services; software, which consists primarily of middleware and operating systems software; systems and technology, which provides clients with business solutions requiring computing power and storage capabilities; and global financing, which facilitates clients ' acquisition of Co. 's systems, software and services.…

    • 2122 Words
    • 20 Pages
    Powerful Essays
  • Satisfactory Essays

    Unit 2 Assignment 2

    • 457 Words
    • 2 Pages

    Global Limited has the reputation as one of the world’s leading providers of infrastructure information systems, software, and services around the world. Global’s clients range from world-wide enterprises to startup companies across all industry sectors, including financial services, manufacturing, transportation, and public services.…

    • 457 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    This position paper describes just how and why Computer Science Corporation (CSC) is worldwide trailblazer in providing technology solutions and services through three principal lines of business: (1) Business Solutions and Services; (2) Global Outsourcing and Services; (3) North American Public Sector. CSC competences take account of systems design and integration, information technology and business process outsourcing, applications software…

    • 3793 Words
    • 16 Pages
    Powerful Essays
  • Satisfactory Essays

    If we look at the contribution rate for the years identified we can see that the contribution margin goes up the longer we don’t harvest the timber.…

    • 653 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Ibm Case Study

    • 547 Words
    • 3 Pages

    What factors led to IBM’s success during the 1960’s and 1970s and its problems during the late 1980 and earry1990s?…

    • 547 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Case Study on Ibm

    • 7734 Words
    • 31 Pages

    In early 2003, Randy MacDonald, the senior vice president of human resources for IBM corporation, was in the midst of a 10-city-in-two-weeks business trip that would take him from IBM’s headquarters in Armonk, NY, to several cities in Central and Eastern Europe, Africa, India, China and several spots in Asia. His schedule was a fitting metaphor for IBM’s strategic and human capital challenges. Randy was reviewing his recent meeting with Sam Palmisano, the CEO of IBM. Randy had been the chief HR executive at IBM since 2000, joining when Lou Gerstner was in the middle of…

    • 7734 Words
    • 31 Pages
    Powerful Essays
  • Satisfactory Essays

    In order for IBM to continue its growth it will have to expand into areas like India. They need consulting groups who can personalize their product and keep the costs low in markets like Mexico which not only makes their product more readily available and affordable it create a type of familiarity among customers that keeps them buying the same products from the same marketers.…

    • 347 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    It Guiding Principles

    • 268 Words
    • 2 Pages

    Information technology services are governed by a set of guiding principles. These principles were developed to express the fundamental concepts and guiding themes for global information technology initiatives, and to assure that activities and IT accomplishments are aligned with corporate strategic goals. Guiding principles document the essential notions for information technology services, provide direction to assure that common goals exist, and communicate a unified message. Ideally, every action taken within the information technology environment should be assessed against the following guiding principles:…

    • 268 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Chapter 9: Global Information Systems Why go Global? –Customers demand integrated worldwide services. Example: shoe company. Prerequisites to the success of a global information system: -Clear understanding of factors such as customs, laws, technological issues, and local business needs and practices. Airline reservation systems- first large-scale interactive global system Global products-Products or services that have been standardized for all markets. Manufacturer might “regionalize” operations Globalization- important factor in purchasing and supply chain Global Information Systems at Rohm & Haas: Part of Dow Chemical Production units in many different countries Overhauled its global information system: By upgrading the order entry system. Installed a companywide materials management system tied in with a global demand planning system. Can now provide better service to its customers. E-business: major factor in the widespread use of global information systems. Builds on the advantages and structures of traditional business The Internet: Simplify communication. Change business relationships. Consumers can engage in comparison shopping more easily. Small companies can conduct business online just as large companies Global Information System (GIS): Information system that works across national borders. Facilitates communication between headquarters and subsidiaries in other countries. Incorporates all the technologies and applications found in a typical information system. Stores, manipulates, and transmits data across cultural and geographic boundaries. International company: can increase and enhance coordination of its subsidiaries and be able to access new global markets Strategic planning is a core function. Defined in terms of two dimensions: control and coordination Control requires: Centralized architecture for data, standardized definitions used across the organization. Standard formats for reports. Defined behaviors for different…

    • 2404 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    The advent of global services is an interesting one, here in the United States we buy computers designed in California, manufactured in China, assembled in Mexico and supported from India. It opens the lines for profit on part of the company whose name the product carries by selecting regions of the world where certain types of labor are permissible or cheaper in contrast to others.…

    • 831 Words
    • 4 Pages
    Good Essays